HQ 0950258 - Country of origin of lace fabric - United States International Trade Commision Rulings

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HQ 950258

December 18, 1991

CLA-2 CO:R:C:T 950258 CC

CATEGORY: CLASSIFICATION

Jeffrey Goldberg
Import Manager
Roth Import Co., Inc.
13 West 38th Street
New York, NY 10018-5598

RE: Country of origin of lace fabric

Dear Mr. Goldberg:

This letter is in response to your inquiry of August 16, 1991, requesting a country of origin determination for lace fabric. A sample was submitted for examination.

FACTS:

The submitted merchandise is French-made Levers lace, an ornamental open-work fabric made on the levers machine and one of finest and most intricate of machine-made laces. The merchandise at issue is sent to China for embroidery work, including the application of beads and sequins. The metallic yarns appear to be part of the lace construction rather than the embroidery work. You state that the breakdown in cost, in French francs per yard, is the following: lace-11.00, beads-2.60, sequins-.55, and labor for beading-2.85.

ISSUE:

What is the country of origin for the merchandise at issue?

LAW AND ANALYSIS:

Country of origin determinations for textile products are subject to Section 12.130 of the Customs Regulations (19 CFR 12.130). Section 12.130 provides that a textile product that is processed in more than one country or territory shall be a product of that country or territory where it last underwent a substantial transformation. A textile product will be considered to have undergone a substantial transformation if it has been transformed by means of substantial manufacturing or processing operations into a new and different article of commerce.

Section 12.130(d) of the Customs Regulations sets forth criteria in determining whether a substantial transformation of a textile product has taken place. This regulation states that these criteria are not exhaustive; one or any combination of criteria may be determinative, and additional factors may be considered.

Section 12.130(d)(1) states that a new and different article of commerce will usually result from a manufacturing or processing operation if there is a change in:

(i) Commercial designation or identity,
(ii) Fundamental character or
(iii) Commercial use.

Section 12.130(d)(2) of the Customs Regulations states that in determining whether merchandise has been subjected to substantial manufacturing or processing operations, the following will be considered:

(i) The physical change in the material or article as a result of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(ii) The time involved in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(iii) The complexity of the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(iv) The level or degree of skill and/or technology required in the manufacturing or processing operations in each foreign territory or country, or insular possession of the U.S.

(v) The value added to the article or material in each foreign territory or country, or insular possession of the U.S., compared to its value when imported into the U.S.

You contend that the country of origin of the submitted lace fabric is France. You state that a new and different article has not been created in China, and the sewing of the beads and sequins on the lace fabric does not constitute substantial manufacturing or processing operations. In addition, you have submitted information showing that the value of the lace fabric made in France is much greater than the value added in China. We would agree that the submitted merchandise has not been transformed into a new and different article of commerce by substantial manufacturing or processing operations in China. This conclusion is consistent with Headquarters Ruling Letter (HRL) 088442 of April 25, 1991, in which we ruled that the attachment of sequins to lace-like fabric is not a substantial transformation. Consequently the country of origin of the submitted merchandise is France.

HOLDING:

The country of origin of the merchandise at issue is France.

The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 177.9(b)(1), Customs Regulations (19 CFR 177.9(b)(1)). This section states that a ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. Should it subsequently be determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished this may affect the determination of country of origin. Accordingly, it is recommended that a new ruling request be submitted in accordance with section 177.2, Customs Regulations (19 CFR 177.2).

Sincerely,

John Durant, Director

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